News Update

News Update
Nov. 20, 2006

Ethanol Study Released

Iowa State University’s Center for Agricultural and Rural Development has released a study analyzing the long-term effects of the growing demand for corn due to ethanol production. Researchers analyzed the effects of increasing corn prices on the grain, oilseed and livestock sectors.

According to the study, at a breakeven price of $4.05 per bushed (bu.), corn-based ethanol production would reach 31.5 billion gallons per year, or 15.6 billion bu. compared to 11.0 billion bu. today. Corn exports and production of pork and poultry would be reduced in response to higher corn prices and increased utilization of corn by ethanol plants.

Visit www.card.iastate.edu/publications/synopsis.aspx?id=1029 for the full report.

ERS Releases Livestock Outlook, Meat Price Spread

The U.S. Department of Agriculture’s (USDA’s) Economic Research Service (ERS) has released its livestock, dairy and poultry outlook focused on current and forecast production, price, and trade statistics. Visit www.ers.usda.gov/Publications/LDP to access the report.

ERS also released a dataset providing monthly average price values for selected cuts of beef, pork and broilers. In addition, retail prices were provided for beef and pork cuts, turkey, whole chickens, eggs and dairy products. Visit www.ers.usda.gov/Data/MeatPriceSpreads to access the report.

Koreans Protest U.S. Beef

South Korean inspectors were interrupted by protestors as they began inspecting the country’s first shipment of U.S. beef since a bovine spongiform encephalopathy (BSE)-related ban was lifted.

According to Meatingplace.com, the inspection was delayed due to protests that the X-ray machines used to inspect the beef were insufficient to guarantee its safety. Authorities said the machines were used to detect for large bone fragments, but actual meat samples would be tested for BSE.

The country’s ag ministry spokesman said if no dangerous materials are found, the beef could be on store shelves by this weekend.

Bill Targets Animal Activists

The U.S. House of Representatives passed a bill last week that would impose stiffer consequences for animal activists who threaten scientists.

According to The Associated Press, the legislation would make it illegal for activists to damage or interfere with third-party organizations that do business with animal research organizations, farms, zoos, pet stores and similar operations already protected by law.

Violators could be sentenced to up to a year in jail for economic damages of less than $10,000, and up to five years in prison if a threat produced a “reasonable fear” of bodily harm. According to AP, prison sentences of up to 10 years could be issued if someone is injured.

The Senate passed the legislation earlier this year, therefore, the bill was sent to President Bush.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.